Nationwide withdraw interest only on shared equity & amend non-eea criteria

holly_hobby

Just a heads up to those advisers (and interested parties) who have not yet been contacted by NWide on this.

Main details as per issued press bulletin:-

"Nationwide will no longer lend on an interest-only basis for shared equity mortgages as part of a number of changes to its shared equity criteria.

Further change in that Nationwide will also include 3% of the equity share loan, as an outgoing in the client’s affordability calculation.


The equity loan, which is provided by a third party such as a housing association, must be interest free for the first five years to be accepted by Nationwide’s shared equity scheme.

In addition, Nationwide will no longer accept shared equity applications from non-EEA nationals without indefinite leave to remain in the UK "

H